The European Parliament has decided to file a lawsuit against the European Commission over the release of €10.2 billion in frozen funds to Hungary. The decision was confirmed by Parliament’s president, Roberta Metsola, during a meeting with political group leaders, giving the deadline for submission as 25 March. This move places additional pressure on Ursula von der Leyen, who is seeking a second term as the head of the Commission and has vowed to uphold the rule of law. The European People’s Party did not oppose the lawsuit, emphasizing the need for legal clarity regarding the use of taxpayers’ money. The decision to unblock the funds for Hungary was based on the country passing a reform to strengthen judicial independence, which lawmakers and civil society have contested, arguing that the overhaul was inadequate.
Lawmakers have expressed concerns that the release of funds to Hungary was made in exchange for Prime Minister Viktor Orbán lifting his veto on key EU agreements, and have criticized the Commission for what they see as an insufficient validation of Hungary’s judicial reform. The Commission has defended its decision, stating that Hungary met the conditions set out in the EU legislation regarding judicial independence. However, nearly €12 billion of Hungary’s allocated cohesion funds and a significant portion of its recovery and resilience plan remain blocked by Brussels, due to concerns over issues such as LGBTQ+ rights, asylum policy, public procurement, and anti-corruption. MEPs have warned that all funds should be treated as a single package, and payments should not be made until deficiencies in all areas are addressed.
The Parliament has previously taken legal action against the Commission, such as in October 2021 when it filed a lawsuit over the Commission’s failure to apply a mechanism linking EU fund payments to respect for fundamental rights. The current lawsuit reflects ongoing tensions between the Parliament and the Commission over issues related to the rule of law and the allocation of EU funds. The Parliament’s decision to take legal action against the Commission highlights the importance of ensuring that EU funds are used in accordance with EU treaties and values, and raises questions about the role of the Commission in overseeing the implementation of these funds. The lawsuit also underscores the broader debate within the EU about the rule of law and the need for transparency and accountability in the allocation of EU funds.
As the lawsuit moves forward, the Commission is expected to defend its decision before the EU court, arguing that it acted in accordance with EU law. The outcome of the lawsuit will have implications for Hungary’s access to EU funds, as well as for the broader relationship between the Parliament and the Commission. The ongoing dispute over the release of funds to Hungary highlights the challenges facing the EU in ensuring that all member states uphold EU values and standards. The lawsuit is likely to generate further debate and scrutiny over the allocation of EU funds and the role of the Commission in monitoring compliance with EU rules and regulations.
